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Hubbell (HUBB) Gains But Lags Market: What You Should Know

Hubbell (HUBB) closed the most recent trading day at $242.02, moving +0.21% from the previous trading session. This move lagged the S&P 500's daily gain of 1.3%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 7.48%.

Prior to today's trading, shares of the electrical products manufacturer had lost 4.18% over the past month. This has was narrower than the Industrial Products sector's loss of 7.57% and lagged the S&P 500's loss of 2.95% in that time.

Investors will be hoping for strength from Hubbell as it approaches its next earnings release. The company is expected to report EPS of $2.46, up 16.04% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.25 billion, up 7.72% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.27 per share and revenue of $5.24 billion, which would represent changes of +6.12% and +5.83%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Hubbell. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. Hubbell currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Hubbell is currently trading at a Forward P/E ratio of 21.43. This represents a no noticeable deviation compared to its industry's average Forward P/E of 21.43.

We can also see that HUBB currently has a PEG ratio of 2.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Manufacturing - Electrical Utilities stocks are, on average, holding a PEG ratio of 2.14 based on yesterday's closing prices.

The Manufacturing - Electrical Utilities industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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